Sunbeam 2005 Annual Report Download - page 18

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Management’s Discussion and Analysis of Financial Condition and
Results of Operations (cont’d)
2003 Activity
On September 2, 2003, we acquired all of the issued and outstanding stock of Lehigh Consumer
Products Corporation and its subsidiary (“Lehigh” and the “Lehigh Acquisition”). Lehigh is a leading
supplier of rope, cord, and twine in the U.S. consumer marketplace and a leader in innovative storage and
organization products and workshop accessories for the home and garage as well as in the security screen
door and ornamental metal fencing market. The purchase price of the transaction was approximately $157.5
million, including transaction expenses. Lehigh is included in the branded consumables segment from
September 2, 2003.
On February 7, 2003, we completed our acquisition of the business of Diamond Brands International,
Inc. and its subsidiaries (“Diamond Brands” and the “Diamond Acquisition”), a manufacturer and
distributor of niche household products, including plastic cutlery, clothespins, kitchen matches and
toothpicks under the Diamond®and Forster®trademarks. The purchase price of this transaction was
approximately $91.5 million, including transaction expenses. The acquired plastic manufacturing operation
is included in the other segment from February 1, 2003 and the acquired wood manufacturing operation
and branded product distribution business is included in the branded consumables segment from
February 1, 2003.
We also completed two tuck-in acquisitions in 2003. In the fourth quarter of 2003, we completed our
acquisition of the VillaWare Manufacturing Company (“VillaWare”). VillaWare’s results are included in the
consumer solutions segment from October 3, 2003. In the second quarter of 2003, we completed our
acquisition of O.W.D., Incorporated and Tupper Lake Plastics, Incorporated (collectively “OWD”). The
branded product distribution operation acquired in the acquisition of OWD is included in the branded
consumables segment from April 1, 2003. The plastic manufacturing operation acquired in the acquisition
of OWD is included in the other segment from April 1, 2003.
Results of Operations – Comparing 2005 to 2004
Years Ended
December 31,
2005 2004
(in millions)
Kitchen products ...................................................... $ 208.0 $205.8
Home improvement products ............................................ 152.7 138.1
Playing cards products (1) ............................................... 122.5 80.5
Other specialty products ................................................ 77.0 48.7
Total branded consumables (1) ....................................... 560.2 473.1
Consumer solutions (2) ............................................. 1,642.1 222.1
Outdoor solutions (3) ............................................... 820.7 —
Other ............................................................ 233.6 195.6
Intercompany eliminations (4) ....................................... (67.5) (52.2)
Total net sales ................................................. $3,189.1 $838.6
(1) The USPC business is included in the branded consumables segment effective June 28, 2004.
(2) The JCS business, acquired with the AHI Acquisition, is included in the consumer solutions segment
effective January 24, 2005, and the Holmes business is included in the consumer solutions segment
effective July 18, 2005, the date of its acquisition.
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